Closing down an unlimited company

What

If you would like to close down an unlimited company there is a possibility to do it in a simplified process, but you have to do the normal process (you can see more information: under “Work – Closing down a limited company”) if:

  • the liquidator doesn’t agree with the demand of one of the creditors,
  • the creditor starts a legal procedure against the company,
  • if there is an ongoing process regarding to liquidation excuse,
  • 150 days expire after you start the process or it becomes foreseeable that the liquidation process cannot be finished in 150 days.

Good to know

For information in English about the Hungarian administration system (government offices, government windows, allowances, etc.) you can call the governmental helpline, what you can find under “Everyday life – Governmental helpline” on this link: http://hu.danubecompass.org/archives/situations/governmental-helpline. If you are calling from Hungary call this number: 1818, if you are calling from abroad call this number: +36 (1) 550-1858.

Steps

STEP 1: Closing down a company is the decision of the company’s highest decision-making body is needed. The decision-making body nominates a liquidator.

STEP 2: The liquidator has to announce the liquidation in the Company Gazette (Cégközlöny) in 8 days after the process starts.

STEP 3: In 30 days after the process starts the lead representative prepares the report, do everything what is described in the relevant legal sources, save the money for the fee of the liquidator, make a register about documents cannot be destroyed and notifies the employees of the company.

STEP 4: The liquidator notifies the relevant public institutions.

STEP 5: After announcing the liquidation the creditors have 40 days to announce their demands to the company.

STEP 6: The liquidator makes a record about the demands and distinguishes the acknowledged and the contested demands. After that he/she submits this record to the registry court.

STEP 7: Make a proposal about the asset allocation between the members, accept it and do the allocation itself.

STEP 8: At the end of the procedure the registry court deletes the company from the system.

Where

The nominated lawyer (it is obligatory to have legal representation) has to announce the closing down process to the registry court.

Registry court

Here you can find the county level registry courts (in Hungarian): http://birosag.hu/torvenyszekek/cegbirosagok